Virtual Roadshow Frankfurt

Photo: Vattenfall / Jorrit Lousberg

BASF Capital Market StoryDr. Hans-Ulrich Engel, CFOVirtual Roadshow FrankfurtJuly 29, 2021

2 July 2021 | BASF Capital Market Story

Cautionary note regarding forward-looking statements

This presentation contains forward-looking statements. These statements are based on currentestimates and projections of the Board of Executive Directors and currently available information.Forward-looking statements are not guarantees of the future developments and results outlinedtherein. These are dependent on a number of factors; they involve various risks and uncertainties; andthey are based on assumptions that may not prove to be accurate. Such risk factors include thosediscussed in Opportunities and Risks on pages 158 to 166 of the BASF Report 2020. BASF does notassume any obligation to update the forward-looking statements contained in this presentation aboveand beyond the legal requirements.


Agenda

1At a glance

4Battery materials driving electromobility and future growth


5Pushing the transition to a sustainable economy

2Strategy implementation in full swing

6Reporting

3Unique position to capture growth in Asia


+25%2020 to 2050

Population growth:Driven by the emerging markets

~200million metric tons per year

Circular economy:Non-recycled plastics worldwide

~50%by 2030

China the largest market:Share of global chemical market

What is driving BASF’s future growth?

Global trends provide opportunities for growth in the chemical industry

456zettabytes in 2030

Digitalization:Rapid growth in volume of data

–70%by 2050 (baseline 1990)

Climate change:Required reduction of greenhouse gas emissions to achieve the 2°C goal

~25%per year

Electromobility:Growing demand for battery materials until 2030

Sources: UN, IEA, Conversio, UBS Foresight, BASF


Unique Verbund concept

Industry-leading innovation platform

Strong and expanding local presence in fast growing Asian market

Creating value to society and contributing to a sustainable development

Progressive dividend policy

6 Verbund sites globally

241 additional production sites worldwide

6.2 million metric tons of CO2 avoided globally in 2020

€2.1 billion R&D expenditures in 2020

~10,000 employees in R&D

Sales of ~€10 billionin 2020 with products launched during last 5 years

2 Verbund sites already

>70 production sites

€15.4 billion1 sales in 2020

Strong volume and earnings developmentof BASF in Greater China

Target: 25% CO2 emission reduction by 2030 (compared with 2018)2

We aim to achieve net zero CO2 emissions2

by 2050

Achieve €22 billion in Accelerator sales by 2025 (2020: €16.7 billion)

Aim to increase the dividend per share every year

Dividend of €3.30 per share for 2020

Unique position to deliver long-term value

1 Sales in Asia Pacific by location of customer. Only includes sales from BASF entities fully consolidated according to IFRS 10/112 The goal includes Scope 1 and Scope 2 emissions. Other greenhouse gases are converted into CO2 equivalents according to the Greenhouse Gas Protocol


Our ambitious financial targets

> 9% 1.7%

> €3.30 €3.30

>-0.4% -0.5%

+3–5% -10.7%

1 Return on capital employed (ROCE) is a measure of the profitability of our operations. We calculate this indicator as the EBIT generated by the segments as a percentage of the average cost of capital basis

Increase the dividend per share every year based on a strong free cash flow

Achieve a return on capital employed (ROCE)1

considerably above the cost of capital percentage every year

Increase EBITDA before special items by 3% to 5% per year

Grow sales volumes faster than global chemical production every year

Target 2020 statusProfitable growth SDG


€22.0billion

€16.7billion

≤ 16.4 million metric tons

20.8millionmetrictons

Our ambitious non-financial targets1

1 Targets as published in the BASF Report 2020, CO2 targets updated on March 26, 20212 The goal includes Scope 1 and Scope 2 emissions. Other greenhouse gases are converted into CO2 equivalents

according to the Greenhouse Gas Protocol. 3 2030 target compared with 1990: 60% CO2 reduction4 Products with substantial contribution to sustainability5 Relevant spend; based on risk matrices, purchasers’ assessments and other sources

We want to reduce our absolute CO2emissions2 by 25 percent by 2030(development of carbon emissions compared with baseline 2018)3

Achieve €22 billion in Accelerator sales4

by 2025

Effective climate protection Sustainable product portfolioTarget 2020 status SDG Target 2020 status SDG

100% 46.2%Introduce sustainable water management at our production sites in water stress areas and at our Verbund sites by 2030

≤ 0.1 0.3Reduce worldwide process safety incidents per 200,000 working hours to ≤ 0.1 by 2025

30% 24.3%Increase the proportion of women in leadership positions with disciplinary responsibility to 30% by 2030

90%

80%

80%

68%

Cover 90% of our relevant spend5 with sustainability evaluations by 2025Have 80% of our suppliers improve their sustainability performance upon re-evaluation

≤ 0.1 0.3Reduce the worldwide lost-time injury rate per 200,000 working hours to ≤ 0.1 by 2025

> 80% 82%More than 80% of our employees feel that at BASF, they can thrive and perform at their best

Resource efficiency and safe production

Employee engagement and diversity

Responsible procurement

Target 2020 status SDG

Target 2020 status SDGWe aim to achieve net zero CO2 emissions2

by 2050


Q2 2021: BASF with very strong second quarter supported by higher prices and volumes

Strong growth momentum continued in Q2 2021

In Q2 2021, volumes and prices grew across all regions andall segments

Earnings in upstream businesses considerably above Q2 2020, despite a slight sequential decline in margins compared withQ1 2021

Downstream businesses with strong demand and increased prices but continued pressure from raw materials prices

995

226

2,355

0

500

1,000

1,500

2,000

2,500

Q2 2019 Q2 2020 Q2 2021

EBIT before special items by quartermillion €

137% 942%


BASF Group Q2 2021 and H1 2021: Financial figuresFinancial figures Q2 2021 Change H1 2021 Change

million € % million € %Sales 19,753 56 39,153 33

EBITDA before special items 3,217 162 6,398 68

EBITDA 3,199 199 6,375 82

EBIT before special items 2,355 . 4,676 151

EBIT 2,316 . 4,627 205

Net income from shareholdings -44 94 24 .

Net income 1,654 . 3,372 .

Reported EPS 1.80 . 3.67 .

Adjusted EPS 2.03 . 4.03 167

Cash flows from operating activities 2,537 13 2,012 66

Free cash flow 1,770 17 789 .


Outlook 2021 for BASF Group

Outlook 2021 revised forecast previous forecastSales €74 billion – €77 billion €68 billion – €71 billionEBIT before special items €7.0 billion – €7.5 billion €5.0 billion – €5.8 billionROCE 12.1% – 12.9% 9.2% – 11.0%Accelerator sales €21 billion – €22 billion €19 billion – €20 billionCO2 emissions 20.5 – 21.5 million metric tons 20.5 – 21.5 million metric tons

Underlying assumptions for 2021 (previous assumptions in parentheses) Growth in gross domestic product: 5.5% (5.0%) Growth in industrial production: 6.5% (5.0%) Growth in chemical production: 6.5% (5.0%) Average euro/dollar exchange rate: $1.20 per euro ($1.18 per euro) Average annual oil price (Brent): $65 per barrel ($60 per barrel)

11 July 2021 | BASF Capital Market Story 1 Since July 1, 2021, the division “Dispersions & Pigments” is named “Dispersions & Resins”

BASF’s diversified portfolio with market-oriented segment structure provides resilience and supports customer orientation

Surface Technologies

Chemicals

Materials

Nutrition & Care

AgriculturalSolutions

Industrial Solutions

OtherPetrochemicals, Intermediates

Performance Materials, Monomers

Catalysts, Coatings

Care Chemicals, Nutrition & Health

Agricultural Solutions

Dispersions & Resins1, Performance Chemicals

Service units (e.g., business services, procurement, engineering)Regions and countries

Corporate center (governance units)

Verbund


Each segment has a clear and compelling path forward

Chemicals Materials Industrial Solutions


Nutrition & Care


% of sales 20201 14% 18% 13% 28% 10% 13%

EBITDA bsi 20201 €1.3 billion €1.7 billion €1.2 billion €1.0 billion €1.2 billion €1.7 billion

Core theme Verbund Advanced materials

Additives platform

Surface modification platform

Consumer ingredients

Integrated offering of crop protection, seeds & traits, digital solutions

Innovation focus Improved or new processes

Applications,biomaterials Formulations Battery materials,

surface effectsBiotechnology, formulations

Crop protection, seeds & traits,digital farming

Capex relevance

M&A relevance

Sustainability ChemCyclingTM Bio-based materials

More from less

Low-emission mobility

Bio-based and natural, traceability

Better with less

1 Other (sales 2020: €2.4 billion, EBITDA bsi 2020: –€609 million) not depicted on this slide


Our unique Verbund concept is one of BASF’s greatest assetswith multiple benefits strengthening the portfolio

Technologies

Production

Value Chains

Markets

Digitalization

6.2 million metric tons of CO2 emissions avoided globally in 2020

Integration enables drop-in solutions for bio-based and recycled feedstock for low-carbon products

Ensure competitive supply of key raw materials and products to all segments while avoiding CO2emissions

Leverage technological advantages and innovation across all segments

Unique expertise in developing and integrating new, low-emission technologies

Create customer relevance through size and broad portfolio

Harvest the advantages offeredby digitalization across BASF, for example, by calculating product carbon footprints

Verbund


We operate close to our customers in all regions worldwide

Sales 2020 by location of customer

Sablona

North AmericaSales (million €) 15,709Employees 16,948

Asia PacificSales (million €) 15,406Employees 17,753

South America, Africa, Middle EastSales (million €) 4,905Employees 6,752

1 In each case

BASF sales by industry 2020Direct customers

> 20%1 Chemicals and plastics | Transportation 10–20%1 Agriculture | Consumer goods

< 10%1 Construction | Electronics | Energy and resources | Health and nutrition

Regional centersSelected sitesVerbund sites

Selected research anddevelopment sites

Planned Verbund site

EuropeSales (million €) 23,129Employees 68,849


Use of cash – clear focus on long-term shareholder value

Organic growth

Progressive dividend

Portfolio upgrading

Share buybacks

€22.9 billion capex budget 2021–2025 Proceeds from divestitures

to support BASF’s major growth projects Around €2.0 billion in R&D

expenses per year

Aim to increase dividend per share every year Solid balance sheet and

strong free cash flow support dividend policy

Strengthen portfolio through selective M&A opportunities while maintaining price discipline Focus the portfolio with

continued pruning measures

Share buybacks are part of our toolbox but are currently not being considered


High capex discipline in ongoing business leads to lowercapex budget in five-year planning period

0%

25%

50%

75%

100%

By segment By region

Capex budget 2021–2025: €22.9 billion (2020–2024: €23.6 billion), thereof €3.6 billion in 2021

1 Alternative sites currently being investigated

25% Other (Infrastructure, R&D)

4% Agricultural Solutions

13% Nutrition & Care

14% Surface Technologies

4% Industrial Solutions10% Materials

30% Chemicals 39% Europe

41% Asia Pacific

18% North America

1% South America, Africa, Middle East 1% Other1


BASF’s industry-leading innovation platform ensures long-term organic growth

Key facts 2020

R&D expenses to sales ratio ~3.5% Commitment to R&D with annual spending

of ~€2.0 billion ~10,000 employees in R&D ~950 new patents filed in 2020 Research Verbund: 8 Academic Research Alliances

are complemented by cooperations with ~250 universities and research institutes

~€10 billion sales generated from R&D activities with products launched during last 5 years

Accelerator sales of €16.7 billion in 2020;€22 billion in Accelerator sales targeted by 2025

Peak sales potential of BASF’s Agricultural Solutions innovation pipeline of >€7.5 billionbetween 2020 and 2030

R&D expenses 2020

Agricultural Solutions40%

Materials9%

Nutrition & Care8%

Corporate research18%

Chemicals5%

Industrial Solutions8%

Surface Technologies12%

€2,086 million


Attractive shareholder return – also in challenging times

Key facts 2020 Stable dividend of €3.30 per share

Total dividend payment of €3.0 billion

Dividend yield of 5.1% based on the share price of € 64.72 at year end 2020

1 Dividend yield based on share price at year end

Dividend per share €

1.50

1.95 1.951.70

2.202.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.30

0.00

1.00

2.00

3.00

4.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

3.9% 3.9% 3.7% 4.6% 3.7% 4.0%3.5% 4.1% 3.4% 3.4% 5.3% 4.9% 5.1%Yield1 4.1% 7.0%


Agenda

1At a glance





6Reporting



Transforming into an agile and customer-focused organization

Embedding to bring services closer to customers

Streamlined headquarters and services

Regions with sharpened roles to increase customer focus

Simplification of process landscape

People working in an entrepreneurial performance culture

Action fields Progress report

On October 1, 2019, we completed the embedding of around 20,000 employees

Since January 1, 2020, the lean corporate center with ~1,000 employees is operating. In addition, the Global Business Services unit was established

Regions with strengthened customer focus, supporting and enabling the businesses locally

Simplification measures>200 projects implemented

Empowering and incentivizing employees to take ownership in their area of expertise


Excellence Program 2019–2021: On track to achieve the targeted annual EBITDA contribution

1 Run rate; 2 One-time costs in the respective year

600

1,400

2,000

500

200 150

0

500

1,000

1,500

2,000

2019 2020 2021

Annual EBITDA contribution1 One-time costs2

Key measures:

Operational excellence with focus on production, logistics and planning

Organizational development targeting leaner structures in the areas of services, headquarters and R&D- Personnel cost savings: reduction of ~5,600

positions globally achieved by the end of 2020; around 7% of the personnel reduction delayed into 2021

- Increased process efficiency, e.g., in procurement

- R&D cost reduction via focusing budgets

million €

22 July 2021 | BASF Capital Market Story 1 Selected, closed transactions 2010–today

~€8.8 billion sales in emerging and innovation-driven businesses

Functional crop care Personal care and food ingredients Omega-3 fatty acids Enzymes Battery materials Specialty plastics Refinish coatings Surface treatment Seeds and crop protection Polyamide business

Divestitures

~€29.7 billion sales in businesses with decreased differentiation potential

Styrenics Fertilizers Natural gas trading and storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings Leather chemicals Water and paper chemicals Oil & gas Construction chemicals Pigments business

Acquisitions

Selected transactions 2010−today

BASFcore business

We have consistently refocused our portfolio towards innovativegrowth businesses1


Recent portfolio measures: Acquisitions

BASF and Shanshan to form a joint venture for battery materials production in China

BASF to hold 51%, Shanshan 49% BASF investment in a mid-triple-digit million-euro range Hunan Shanshan Energy operates four production sites for CAM

and PCAM in China, with an annual capacity of 90 kt by 2022 By forming the JV, BASF further strengthens its position in Asia and

is increasing its global annual capacity to 160 kt by 2022 with further expansions underway

Closing is targeted for later this summer1

1 Following the approval of the relevant authorities

BASF to acquire 49.5% of the offshore wind farm Hollandse Kust Zuid (HKZ) from Vattenfall

Once fully commissioned HKZ will be the largest offshore wind farm in the world with a total installed capacity of 1.5 gigawatts

BASF will use the zero-emission electricity for its sites in Europe, mainly in Antwerp, Belgium

Purchase price of €0.3 billion, BASF’s initial total commitment is ~€1.6 billion. BASF intends to reduce its investment by selling shares to a financial co-investor

Closing is expected in Q4 20211

Photo: Vattenfall / Jorrit Lousberg


Recent portfolio measures: Divestitures

Sales 2018: ~€1 billion BASF and DIC reached an agreement on

the acquisition of BASF’s pigments business in August 2019

Purchase price of €1.15 billion1

Closing took place on June 30, 2021

DIC acquired BASF’s pigments business Initial public offering of Wintershall Dea

Sales 2020: ~€3.6 billion Merger took place on May 1, 2019 Realization of synergies on track,

integration completed Initial Public Offering planned beyond

2021, subject to market conditions

BASF and Clayton, Dubilier & Rice to sell Solenis to Platinum Equity

Sales 20202: $2.8 billion Enterprise value: $5.25 billion for Solenis,

which includes net debt of around $2.5 billion

BASF holds 49% of the shares in Solenis; 51% of the shares are held by Clayton, Dubilier & Rice and the Solenis management

Closing of the transaction expected before the end of 20213

1 On a cash and debt-free basis2 Fiscal year ending September 30, 2020; 3 Following the approval of the relevant authorities


Clear acquisition criteria

Strategic acquisition criteria Financial acquisition criteria

We want to acquire businesses which …

create more value as part of BASF’s Verbund help achieve relevant market positions drive innovation or technological differentiation enable new and sustainable business models

We want to acquire businesses which …

provide a return on capital employed above the WACC after full integration into BASF Group

are EPS accretive by year three at the latest contribute to growth of EBITDA before special items


Agenda

1At a glance





6Reporting



Asia Pacific is the growth region for global chemical production with China as the major driver

Source: BASF 1 Real chemical production excluding pharmaceuticals.

Real chemical production excluding pharmaceuticalsbillion US$

Greater China47%

Rest of Asia Pacific14%

Middle East, Africa4%

Europe17%

South America3%

North America15%

Global GDP CAGR +3.1%CAGR1 +3.1%

Greater China~53% (CAGR +4%)

2020: ~4,100

Rest of Asia Pacific14% (CAGR +3%)

North America13% (CAGR +2%)

South America2% (CAGR +2%)

Europe14% (CAGR +1%)

Middle East, Africa4% (CAGR +3%)

2030: ~5,600


BASF is active in Asia Pacific since 1885 and has a unique position to capture growth in the region

Nanjing

Hong Kong

Kuala Lumpur

KuantanZhanjiang1

Regional center

Verbund sites

Selected sites

R&D/Technical centers

Shared Services Center

1 BASF intends to establish a second Verbund site in China2 Only selected sites and offices are depicted on this chart. Site and office numbers

refer to companies of significant size where BASF holds a stake greater than 50%3 As of December 31, 2020 4 Sales by location of customer. Only includes sales from BASF entities fully

consolidated according to IFRS 10/11

BASF Group in Asia Pacific (2020)

BASF is present in 19 markets

>70 production sites1

~100 sales offices2

17,753 employees3

~€15.4 billion sales4

~€0.8 billion EBIT


BASF in Asia Pacific – a balanced portfolio

1 Sales to third parties by location of customer; figures do not include sales of joint ventures consolidated at equity such as BASF-YPC Ltd., Nanjing, China

ASEAN: Singapore, Philippines, Vietnam, Thailand, Indonesia, Malaysia, Myanmar, Cambodia, LaosSouth Asia: India, Pakistan, Bangladesh, Sri Lanka, NepalSouth Korea: Includes Mongolia

0%

25%

50%

75%

100%

2020

4% Other 5% Agricultural Solutions

10% Nutrition & Care

32% Surface Technologies

15% Industrial Solutions

23% Materials

11% Chemicals

2% Australia, New Zealand9% South Korea

11% ASEAN

11% Japan

12% South Asia

55% Greater China

0%

25%

50%

75%

100%

2020

Sales1 by sub-region in 2020: €15.4 billionSales1 by segment in 2020: €15.4 billion


BASF is uniquely positioned to capture further growth in China– proven track record of strong earnings development in the region

1 Source: BASF, real chemical production excluding pharmaceuticals (base year 2015); as of February 20212 Restated figures due to reporting of construction chemicals as discontinued operation.

Not included: BASF-YPC Company Limited as BASF’s share is accounted for at-equity3 Source: BASF, real GDP growth and real chemical production excluding pharmaceuticals (base year 2015); as of November 2020

BASF’s sales volumes outgrewGreater China’s chemical production

Real chemical production growth1 (CAGR 2015–2019)%

3.1

4.7

7.5

0

2

4

6

8

Global chemicalproduction

Chemicalproduction

Greater China

Volumegrowth BASFGreater China

-0.4% 3.2% 12%

Figures 2020 vs. 2019

0

5

10

15

20

0

500

1,000

1,500

2,000

2015 2016 2017 2018 2019

Strong earnings developmentof BASF in Greater China

EBITDA before special items

EBITDA before special items margin

EBITDA2 before special items (CAGR 2015–2019)million €

+28% CAGR

€1.3 billion EBITDA bsi 16% EBITDA bsi margin

Figures 2020

2

Volume-growth strategywith focus on Asian markets

Real chemical production growth3 (CAGR 2020–2030)%

3.1 3.14.3

0

2

4

6

8

Global GDPgrowth

Global chemicalproduction

Chemicalproduction

Greater China

U.S. and Europe: ~1.5%

margin in %


Guangdong is home of key customers from fast-growing industries

Guangdong

671

2020

151

2020

Strongly growing industrial base1

Real billion US$

Largest automotive production, China

# of motor vehicles built in Guangdong (1,000)

Large chemical production2

Real billion US$

Steady increase of private consumption3

Real billion US$

3,133

2020

611

2020

~5.3% CAGR

~3.1% CAGR

~6.1% CAGR

~5.5% CAGR

CAGR (%, p.a.): 2015–2020 Market characteristics Around 126 million residents in

Guangdong province (2020)4

GDP Guangdong (2020): ~US$1,706 billion (exceeding GDP of South Korea)

GDP growth from 2020–2035:5-6% p.a.

Key customer industries: transportation, consumer goods, home and personal care, electronics

Chemical products are generally undersupplied from local production

1 Real value added, manufacturing Guangdong2 Real chemical production Guangdong; inferred by gross output/value added ratio for China3 Real private consumption Guangdong; IHS forecast4 General Office of Shenzhen Municipal People’s Government


BASF intends to build a world-class Verbund site in South Chinato serve fast-growing customer industries in the region

Key facts

Wholly owned and operated by BASF

Project is currently in the feasibility phase

First plants expected to be operational in 2022

US$10 billion capital expenditures to be implemented in phases until 2030

Most advanced Verbund site with smart manufacturing concepts


Agenda

1At a glance





6Reporting



Rise of e-mobility is net positive for chemicals demand per car

Catalysts

Internal CombustionEngine (ICE)

Cathode Active Material (CAM)

Battery Electric Vehicle (BEV)

Emissions control and power generation

Higher demand:Growth in battery materials more than compensates some catalyst replacement

Engineering plastics

Coolants

Coatings

Battery

Higher demand:Growth drivers: Flame retardant plastics, battery housings and cable sheathing

Comparable demand:Growth areas: E-coolants and specialty fluids for e-mobility and autonomous driving

Comparable demand:Growth areas: Coatings for battery housings and passive vehicle-temperature management

+

+

=

=

Engine

35 July 2021 | BASF Capital Market Story 1 Plug-in hybrid and full hybrid electric vehicles

BEVs and hybrids create superior growth opportunities in battery materials

0

20

40

60

80

100

120

2020 2025 2030BEV: Battery Electric Vehicles Hybrids: ICE + Battery1 ICE only

Global vehicle production by engine typemillion units

Electromobility drives battery materials growth

20302020

~25% CAGR

Market projections for 2030: ~30 million electric vehicles built per year >2,500 kt of CAM in electromobility €50-65 billion CAM market size 27%

CAGR

15%CAGR

-0.2%CAGR


BASF is well-positioned in the value chain with strategic partnerships to secure high-purity raw materials and develop closed loops

The chemistry of cathode active materials is keyto addressing electromobility challenges.

Metal oremining and upgrading

Cellbatteries

Metal salt solution and cast CAM and precursors

Mining Systems and applicationsMetal refinery BASF Battery Materials

OEMs

Recycling and metal refiningvia partnerships


BASF is a leading supplier for high energy density cathode active materials to the automotive industry

CAM drive battery performance

HED™ Nickel Cobalt Manganese Oxide (NCM) & Nickel Cobalt Aluminum Oxide (NCA)

Own precursor and cathode active materials manufacturing

Global footprint, R&D, technology centers and production sites

Comprehensive IP portfolio and close relationship with automotive industry

BASF’s targets and approach

Double the range of a midsize car to 600 km

Double the battery lifetime Halve the size of the battery Reduce the charging time

to 15 minutes

Balance chemical composition Optimize production process


BASF becomes cathode active materials supplier with capacitiesin all three regions

Production sites

Research & development hubs

2018Second CAM production facility in Battle Creek, Michigan; merged with Elyria, Ohio into BASF TODA America (BTA)

First CAM production facilityin Elyria, Ohio

2012

R&D centerin Beachwood, Ohio

Foundation of BASF TODA Battery Materials (BTBM),

Japan, with R&D center

Tripled capacity at BTBMin Onoda, Japan

2017

2015

BASF and Eramet to assess nickel-cobalt refining complex

in a feasibility studyin Weda Bay, Indonesia

2020

CAM production and recycling prototype plant Schwarzheide, Germany

2022 and 2023R&D centerin Ludwigshafen,

Germany

R&D centerin Shanghai,

ChinaCAM precursor productionin Harjavalta, Finland planned

2022Europe

greenfield production

under construction

2021BASF and Shanshan to form a JVserving the largest battery materials market, China1

1 Closing of the transaction is targeted for later this summer following the approval of the relevant authorities

Productionin China


BASF’s unique value proposition with leading sustainability offering

Short and reliable supply chain

Sustainable sourcing

Best in class CO2 footprint

Battery recycling

Global production

Secured metal

sourcing

Low carbon footprint

Battery recycling

Sizeable and expandable capacity in Europe starting 2022

First CAM producer in all three regions

Secured high-purity metal through partnerships

Reduced supply risk and logistics efforts

Highly energy efficient manufacturing process technology

Utilization of low-CO2 / renewable energy

Closed loop recycling offering

Proprietary technology


BASF Battery Materials in pole position

Broad high energy density CAM portfolio

Tailored solutions to strong customer base

Established manufacturing know-how

Strong innovation and growth pipeline

Global presence and secure supply chain

Long-standing strategic partnerships

Leading raw material and sustainability position


Agenda

1At a glance





6Reporting



Our commitments to reachingthe Paris Climate Agreement

203025% CO2 emissions reduction (compared with 2018)1

2050net zeroCO2 emissions1

1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO2 reduction42 July 2021 | BASF Capital Market Story


Our path to reduce BASF emissions from 2018 to 2030

BASF greenhouse gas emissions (Scope 1 and Scope 2) 2018–2030

50%25%

Businessas is 2018

Growth (organic, inorganic)

Verbund site South China

Grey-to-green Power-

to-steam

Temporarymeasures

CO2 increase from growthCO2 reduction in business as is 2018

Opex

Newtechnologies Bio-based

feedstocks


Our path to reduce BASF emissions from 1990 to 2050

BASF greenhouse gas emissions (Scope 1 and Scope 2) 1990–2050

>45% ~75% ~60% 100%

CO2 reduction in business as is 2018 CO2 increase from growth

Businessas is 2018

Growth (organic, inorganic)

Verbund siteSouth China

Grey-to-green

Temporarymeasures

Opex

Newtechnologies Bio-based

feedstocks

Power-to-steam


No downstream decarbonization without upstream decarbonization

Global GHG emissionsScope 1+2

Electric power Steam Upstream Downstream

22

965 2

Grey-to-green

Continuous opex2

New technologiesPower-to-steam

1 Includes emissions from process energy 2 Operational excellence measures

Bio-based feedstocks

BASF greenhouse gas emissions 2018 million metric tons per year

Energy production11

Chemical production111


BASF, SABIC and Linde join forces to realize the world’s first electrically heated steam cracker furnace

Goal is to drive concepts and faster implementation through combined strengths BASF and SABIC: extensive know-how and intellectual

property in developing chemical processes; long-standing experience and knowledge in operating steam crackers

Linde: expertise and intellectual property in developing and building steam cracking furnace technologies and driving future industry commercialization

Construction of a demonstration plant depending on funding granted – application to E.U. Innovation Fund and German funding program “Decarbonization in Industry”

If funding is granted, startup could happen as fast as 2023

Conventionalfurnace

eFurnace

CO2Raw olefinsNaphtha

850°CFurnace

Natural gas

Renewable energy

Naphtha Raw olefins

850°CeFurnace


Methane pyrolysis combines low emissions withlow energy demand

Methane pyrolysis requires around 80% less electricity than water electrolysis

Funding for pilot reactor was grantedby German Federal Ministry of Education and Research

Pilot reactor at the Ludwigshafen site

Start-up of first commercial plant projected for 2030Natural gas or

biomethane

Renewableenergy

Hydrogen

Solid carbon

We have achieved a milestone in scaling up our groundbreakingmethane pyrolysis process for hydrogen production


Raw materialsScope 3

20,000

Production plantsScope 1

700Product Carbon

Footprints of

sales products

~45,000

CO2

EnergyScope 2

10 TWh/a

Cradle-to-gate Product Carbon Footprints for BASF’s portfolio available by end of 2021 based on process emissions, energy demand and upstream emissions

Turning Carbon Management into business opportunities

1011101010100001010100101010101011110101010110100

10111010101000010101001010

1011101010101010111101010101101001010100101010100010101010100


What we expect from our suppliers:Transparency on and reduction of CO2 emissions

BASF will work all levers to reduce CO2 emissions

BASF is establishing certified, full CO2 tracing (Product Carbon Footprint) and needs transparency from its suppliers for this

To support its suppliers and the industry,BASF will share its knowledge to create an international standard for CO2 transparency tools

BASF will work together with its suppliers and expects them to reduce the CO2 footprintof their products

Raw materials

Extraction

1Scope 3 upstream

TransportProcessing

CO2


BASF’s Circular Economy Program: Targets

250,000 metric tons of circular feedstock by 2025 Double circular sales to €17 billion by 2030 Prioritize related capex, M&A, R&D


From a linear to a more circular economy– BASF contribution: ChemCyclingTM

Incineration LitteringLandfill

Close the loop

Linear economy

Mechanicalrecycling

ChemCyclingTM

+ can handle mixed plastic waste

+ produces virgin graderaw materials

+ replaces virgin fossil resources

+ CO2 emissions prevented1

Plastic waste and end-of-life tires are converted into liquid feedstock and fed into BASF’s value chains

Investments into Quantafuel (pyrolysis of mixed plastic waste) and Pyrum (pyrolysis of end-of-life tires) and uptake supply agreements with both companies

Agreement with New Energy for uptake of pyrolysis oil derived from end-of-life tires and for a joint feasibility study for adaption of technology to other plastic waste streams

1 Compared to conventional plastic production and incineration of plastic waste


Transformation requires a broad technology portfolio

Low-CO2

Bio-based

Ccycled

CircularEconomy

Carbon Management

Methane pyrolysis ~0.9 Heat pumps ~0.6-1.0 eDrive NH3 ~0.7 eFurnace ~0.2 Water electrolysis ~0.2

CO2 avoidance potential per megawatt hourof electrical energy used (metric tons of CO2/MWh)

Target: We aim at doubling our circular sales to reach €17 billion by 2030

Focus on closing the loops Renewable-based feedstocks Recycled-based feedstocks Enable recyclability and/or

biodegradability


€16.7 billion of BASF Group sales from sustainable solutions– leveraging our innovation power

Portfolio segmentation: >57,000 specific product applications analyzed by 2020 (€54.1 billion in sales, 98.4% of relevant portfolio1)

Accelerator margins on average ~6 percentage points above the rest of assessed portfolio

Goal: €22 billion of sales with Accelerator products by 2025 (2020: €16.7 billion)

Stronger integration in R&D pipeline, business strategies and M&A projects

We will stop selling Challenged products within maximum five years after classification

1 The product portfolio acquired from Bayer has been partially assessed

SustainableSolutionSteering

Substantial sustainability contribution in the value chain

Meets basic sustainability standards on the market

Specific sustainability issues, actively addressed

Significant sustainability concernidentified and action plan developed

Absolute sales 2020billion €

16.7

30.5

6.8 0.1


Innovations for a sustainable future – Accelerator examples

Baxxodur® EC 301 – Epoxy system for cost-competitive wind blades

Mattex® PRO – Additive in coatings with lower emissions

Serifel® – Biological fungicide against crop diseases

Lipofructyl® Argan LS 9779 –Oil for skin and hair care

Tinuvin® NOR® 356 – Light stabilizer to reduce plastic waste

Elastopir® – PIR system with good insulation properties


BASF in sustainability ratings and rankingsCDPIn 2020, BASF achieved a score of “A-” in the climate category, thus attaining leadership status again. As a first-time participant, BASF achieved a score of “A-” in the forest category. BASF was included in the “Water A list” of leading companies for sustainable water management.Sustainalytics BASF ranks among the top 10% of performers in diversified chemicals. The raters positively highlighted that sustainability targets are reflected in board compensation, underlining an overall strong management of ESG issues.MSCI ESG ResearchIn 2021, BASF was rated “A.” The analysts highlighted that BASF is present in clean tech markets and has a robust carbon mitigation strategy.FTSE4Good Global IndexBASF was included again in the FTSE4Good Global Index 2021, ranked best in class in Basic Materials as well as in the sub-sector Commodity Chemicals.2020 CSR Award of the German federal governmentBASF was recognized for an outstanding and long-term CSR commitment and a holistic CSR strategy which addresses all areas of the company.


Agenda

1At a glance





6Reporting



BASF Group Q2 2021: Volume growth across all regions

1 Location of customer

4-11 -2

7 928

5

-18-4

9 3

34

5-13 -10

4 4

27

0

16 17 12

43

10

-24.0-20.0-16.0-12.0-8.0-4.00.04.08.012.016.020.024.028.032.036.040.044.0

Sales volumes development by region1

quarters compared to prior-year quarters%

Europe North America Greater ChinaBASF Group

Q1 Q2 Q3 Q42020

Q12021

Q2 Q1 Q2 Q3 Q42020

Q12021

Q2 Q1 Q2 Q3 Q42020

Q12021

Q2 Q1 Q2 Q3 Q42020

Q12021

Q2


BASF Group Q2 2021: Volume growth across all segments

Volume development by segment Q2 2021 vs. Q2 2020absolute (million €) terms

Overallvolume3,516

relative (%) terms

20% 42% 26% 44% 5% 15% 17% 28%

Chemicals350

Materials902


466


1,367

Nutrition & Care

79


265Other

87


12,680

19,753

3,516

4,468 -18 -893

0

5,000

10,000

15,000

20,000

25,000

Q2 2020 Volumes Prices Portfolio Currencies Q2 2021

BASF Group Q2 2021: Sales increased considerably due to higher prices and volumesSales bridge Q2 2021 vs. Q2 2020million €

All segments increased volumes

All segments increased prices

Negative FX effects were mainly related to the U.S. dollar

Sales development

Q2 2021 vs. Q2 2020 28% 35% 0% -7%

63% organic sales growth

56%


BASF Group Q2 2021: Very strong earnings growth

EBIT before special items growth by segment Q2 2021 vs. Q2 2020million €

Q2 2021, million € 990 792 307 289 138 75 -236 2,355EBIT before special items by segment


Cash flow development in Q2 2021 and H1 2021Q2 2021 Q2 2020 H1 2021 H1 2020million € million € million € million €

Cash flows from operating activities 2,537 2,242 2,012 1,212

Thereof Changes in net working capital 9 1,190 -2,764 -1,810

Miscellaneous items -9 880 -344 966

Cash flows from investing activities 323 -705 -112 -2,525

Thereof Payments made for property, plant and equipmentand intangible assets -767 -726 -1,223 -1,295

Acquisitions / divestitures 1,125 – 1,118 -1,245

Cash flows from financing activities -4,144 373 -3,434 4,667

Thereof Changes in financial and similar liabilities -999 3,470 -282 7,799

Dividends -3,145 -3,100 -3,152 -3,136

Free cash flow 1,770 1,516 789 -83


Strong balance sheet

Balance sheet June 30, 2021 vs. December 31, 2020billion € Total assets increased by €2.6 billion

to €82.9 billion

Noncurrent assets were almost stable at €49.8 billion

Current assets increased by €3.3 billion to €33.1 billion, primarily due to higher accounts receivable, increased other receivables/miscellaneous assets and higher inventories

Net debt increased by €1.6 billion to €16.2 billion

Equity ratio: 45.9% (June 30, 2021)

Liquid funds

Accountsreceivable, trade

Noncurrentassets

Inventories

Other assets

Otherliabilities

Financialdebt

Equity

25.5 26.7

19.3 19.2

38.1 34.4

June 30, 2021 Dec. 31, 20203.1 4.56.2 5.9

12.6 9.5

11.210.0

49.850.4

June 30, 2021 Dec. 31, 2020

80.382.9

80.382.9


Intermediates 95254%

Chemicals

Sales Q2 2021 vs. Q2 2020million €

Sales development Volumes Prices Portfolio CurrenciesQ2 2021 vs. Q2 2020 20% 78% 0% -7%

Petrochemicals2,467110%€3,419

91%

EBIT before special items million €

2020

-246

227

558

990

-100

100

300

500

700

900

1,100

Q2 Q3 Q4 Q1 Q2

2021


Materials



Performance Materials

1,81269%

Monomers1,93180%


€3,74375%

-80

217

489

672792

-100

100

300

500

700

900

2020 2021Q2 Q3 Q4 Q1 Q2





163186 200

266307

0

100

200

300

400

Q2 Q3 Q4 Q1 Q2

Performance Chemicals78522%

Dispersions& Pigments1

1,57434%€2,359

30%


2020 2021

1 Since July 1, 2021, the division is named “Dispersions & Resins”





-151

200 215

360289

-200

0

200

400

Catalysts5,04998%€5,892

90%


Coatings84353%

2020 2021Q2 Q3 Q4 Q1 Q2


Nutrition & Care

Sales development Volumes Prices Portfolio CurrenciesQ2 2021 vs. Q2 2020 5% 2% -1% -4%


256

143120

218

138

0

100

200

300

Q2 Q3 Q4 Q1 Q2

Care Chemicals1,083

8%

Nutrition & Health501-9%


€1,5842%

2020 2021




H1 2021 vs. H1 2020 10% 2% 0% -7%

Sales H1 2021 vs. H1 2020million €

Seed Treatment 2667%

Fungicides1,414

11%

Insecticides45511%

€4,8095%

Seeds & Traits1,011-1%

Herbicides1,6632%


12026 15

807

75

0

200

400

600

800

2020 2021Q2 Q3 Q4 Q1 Q2


Review of “Other”

Financial figures Q2 2021 Q2 2020million € million €

Sales 793 507

EBIT before special items -236 -80

Thereof Costs of corporate research -78 -81

Costs of corporate headquarters -61 -57

Foreign currency results, hedging and other measurement effects 22 -43

Other businesses 75 24

Special items -49 -48

EBIT -285 -128

Documents

Virtual Roadshow Frankfurt